The Organisation Undoing Tax Abuse (OUTA) and the Democratic Alliance (DA) have alleged that most taxi operators do not pay corporate tax, VAT or payroll taxes, citing the industry's predominantly informal, cash-based business model.
One of South Africa's largest industries, estimated to generate around R100 billion annually, is under renewed scrutiny over claims that it operates largely outside the country's tax system.
The Organisation Undoing Tax Abuse (OUTA) and the Democratic Alliance (DA) have alleged that most taxi operators do not pay corporate tax, VAT or payroll taxes, citing the industry's predominantly informal, cash-based business model.
According to reports, most taxi fares are paid in cash, with operators seldom issuing receipts or maintaining formal financial records, making tax collection difficult.
Speaking to the SABC earlier this year, OUTA CEO Wayne Duvenage said broadening the tax base to include informal sectors such as the taxi industry could generate significant additional revenue for the state.
